Automation Investment Structural Shift: Can German Industry Seize Growth Opportunities in Non-Automotive Sectors?

Shifting Automation Investment Structure: Can German Industry Seize Growth Opportunities in Non-Automotive Sectors?

In early 2026, the annual report released by the Association for Advancing Automation (A3) in the US showed that robot orders in the US grew by 6.6% year-on-year in 2025, reaching 36,766 units with a total value of USD 2.25 billion. More notably, demand for robots from non-automotive customers exceeded that from the automotive industry for the first time, with strong procurement momentum in sectors such as food, consumer goods, semiconductors, and electronics.

While this data comes from the US market, it serves as an industrial signal that cannot be ignored for German industry—the core exporter of global automation technology. German automation companies (such as Kuka, Siemens, Beckhoff, etc.) have long counted the automotive industry as their largest customer base, but now the demand side is undergoing structural changes.

Phenomenon: Non-Automotive Sectors Becoming the New Engine of Automation

The A3 report points out that the recovery in robot orders reflects "the industry's renewed confidence in automation as a long-term competitiveness solution." At the MODEX logistics exhibition, while equipment manufacturers were keen to talk about AI, the core of the conversations still revolved around the foundational capabilities of automation: addressing labor shortages, improving productivity, and supporting capacity repatriation.

Notably, the adoption rate of automation in non-automotive sectors is accelerating. Robot orders have grown significantly in industries such as food and beverage, consumer goods, semiconductors, and electronics—areas previously seen as having "low automation penetration." These sectors are now becoming the primary drivers of market growth.

Impact on German Industry: Opportunities and Challenges Coexist

1. Risks of Over-Reliance on the Automotive Market

German automation suppliers have traditionally held advantages in the automotive sector—body welding, painting, assembly lines, etc. However, the slowdown in the global automotive electrification transition, geopolitical uncertainties, and the rise of Chinese domestic robot brands are compressing growth space in this market. If German companies continue to rely excessively on automotive orders, their performance will face pressure once demand in this industry weakens.

2. First-Mover Advantages in Non-Automotive Fields

German industry already has deep expertise in areas such as food packaging, electronics manufacturing, and semiconductor equipment automation. For example, Siemens' digital factory solutions, Kuka's collaborative robots, and Beckhoff's PC-based control technologies are competitive in non-automotive sectors. However, these fields have long been eroded by Japan's Fanuc, Switzerland's ABB, and Chinese domestic brands. German companies need to more proactively adjust their product strategies and sales networks to capture the growth dividends from non-automotive industries.

3. Technology Integration Capability Becomes Key

Automation demand in non-automotive industries is often characterized by "small batches, high variety, and high flexibility." This differs significantly from the large-scale standardized production in automotive manufacturing. German companies excel at precision engineering and system integration, but face challenges in software usability, rapid deployment, and cost control. Deeply integrating AI, vision systems, and robotics to provide "plug-and-play" solutions will become a core capability for capturing market share.

European and Global Competitive LandscapeEurope's overall automation penetration still lags behind some Asian economies, but Germany, Italy, Sweden and others maintain advantages in high-end manufacturing. The EU's "Industry 5.0" strategy emphasizes human-machine collaboration and resilient supply chains, which highly aligns with the automation needs of non-automotive industries. If German companies can pioneer the promotion of successful non-automotive cases across Europe, it will help consolidate their global leadership in automation.

On the other hand, Chinese robotics companies are aggressively pricing in general industrial fields (such as palletizing and welding), but Germany still holds barriers in complex processes and system-level solutions. However, if German companies fail to expand into non-automotive markets in time, Chinese brands may fill the gap through cost advantages, thereby weakening the long-term competitiveness of German industry.

Long-term Trend Forecast (2026-2036)

• Non-automotive industries will become the main battlefield for automation: Automation investment in food, electronics, life sciences, logistics and other fields will maintain an annual growth rate of 8%-12%, while the automotive industry may enter a plateau phase or even shrink.
• The integration of AI and automation will accelerate: AI is not replacing automation but endowing it with stronger perception, decision-making, and execution capabilities. German companies need to embed AI into controllers, robots, and production lines, rather than just as an add-on feature.
• Modularization and standardization become trends: Non-automotive users lack professional automation teams and prefer standardized, easily integrated, low-cost products. German suppliers need to maintain high quality while reducing system complexity.
• Strengthened industrial chain collaboration within Europe: High energy costs and supply chain security needs will drive further automation in European manufacturing. Germany, as a technology exporter, will benefit, but must be wary of demand diversion caused by the US Inflation Reduction Act attracting manufacturing back to the US.

Conclusion

The US market data is a clear warning and opportunity signal: automation demand is shifting from a "single dominance" of automotive to a "flourishing of multiple industries". For German industry, this means it must accelerate its departure from dependence on traditional automotive customers and instead deeply cultivate emerging fields such as food, electronics, and semiconductors. Companies that can quickly provide flexible, intelligent, and low-cost automation solutions will take the initiative in the next decade. This is not only a market strategy adjustment but also a modernization test of the German manufacturing tradition of "pursuing excellence".

--- *This article is based on the A3 Association's 2026 report and MODEX exhibition observations; all data comes from public sources.*